tv Squawk Box CNBC June 17, 2016 6:00am-9:01am EDT
we don't wear mouthpieces here. i've thought about throwing other stuff at some of these guys. it is friday, june 17, 20i 16 and "squawk box" begins right now. ♪ >> live from new york, where business never sleeps, this is "squawk box." good morning welcome to "squawk box." i'm becky quick. let's check out the u.s. equities at this hour. modest declines. but this is not a lot at this point. dow futures down 6, s&p down 2, the nasdaq down 1 after the market stangd a comeback yesterday. check out what happened overnight in asia. the nikkei was higher. it was up about 1%. and you did see modest advances for both of the chinese markets. in europe in the early trading at this point it looks like the markets are also rebounding nicely after a difficult week
for many markets. the dax is up 1.24. france is you will over a 1 so is the ftsi. and crude oil rising for the first time in seven days. wti up by 66 cents. and also look at currencies. the pound making a sharp comeback this morning after tumbling to a more than two month low. both the uk referendum campaigns have been suspended after the killing of jo cox. gonna show the currencies because -- >> problem with the -- >> goes back to 1.43 in watching it. the betting market, didn't get up to 70. now i think the betting market was the pound. that might be a better
indication of what's happening. >> right. the one market that's really kind of got its finger on the pulse. >> i'm sure the betting market -- obviously it is not as big as the foreign currency market or the pound. >> 1.42. >> and then we didn't show gold. gold is -- gold is going down. gold is going down. after seven straight days. >> now you are ready. >> no i'm not. it was down like 8, $10 or something. but it's on a roll. >> down $11. >> $11. long way to go. >> in the meantime. some of the other big stories. may housing starts at 8:30 a.m. new construction expected to have slipped last month. after surging in april as builders ramped up activity on single and multi family homes, building permits are expected to rise but at a slower pace than in april. and political news this morning.
bernie sanders telling supporters that he is going to work with clinton to transform the democratic party. but sanders didn't concede his presidential campaign. he emphasized the need to continue the, quote, political revolution, unquote. and president obama facing dissent in the ranks. 51 members have signed memo. in light of the near collapse of the cease fire brokered earlier this year. what you do make of that? >> bashar al-assad. >> yeah. what do you make of that is this. >> lead story in the "new york times." >> yeah. >> lead story. i saw that. i -- you know, the syrian mess over the last couple of years if
figures prominently into this election. doesn't it? that has not been a study on american diplomacy on how to screw things up in syria. we had a chance early on. and -- it comes from some right wing organizations. that initially the group that turned into isis we thought maybe those were guys that we should be. >> alying with. >> actually supporting. trump tweeted out at one point see i was right because they were supporting the precursor to isis. >> -- we said things which we didn't follow through on. >> no question we've let syria bubble -- >> -- yesterday too, right? >> i did. testifying before congress saying -- look, isis is not weakened in a lot of ways. >> geographically they have not
maybe in raqqah or wherever over there but probably more capable of serious strikes. and the journal had an editorial that we have to hear the truth after we heard the previous day how much progress we're making interest the president. and anyway, that is strange story. that mp that was murdered with a gun. >> stand first and then with a gun. >> that -- with a knife. but -- >> very difficult to get a fun. and found some things online that he had tried to research how to build a gun. >> and remain camp was quick to blame it on relief camp. >> and according to one eye witness there have been conflicting reports but according to one eye witness he was saying britain first. >> let's talk to someone who probably has a better handle. campaigns for next week's
referendum have been suspended following yesterday's shooting a death of british parliament member jo cox. very popular. nbc's bill neely joins us from london and maybe can fill in some of the blanks for us. or maybe not. >> well there are -- good morning guys. there are quite a lot of blanks. but what we do know is that this has not only completely stunned britain. it stopped politics in its tracks. all political campaigning for the referendum here has been stopped. and it is not just that this was the first murder of a lawmaker here in a generation. it is the first ever killing of a female member of parliament: and i think it was also this particular woman. jo cox was almost universal popular. elected last year and almost bounced into the parliament with huge energy drive and an infectious smile. but also the brutal nature of her murder in broad daylight on the street. she was first stabbed and then
the man pulled a gun and shot her three times. once in the head it. doesn't appear at the moment this was a case of islamist terrorism but they are still investigating whether it was politically motivated. she had been an aid worker most of her career in afghanistan, darfur, how ironic that she was murdered near her home in the north of england. she fought hard for immigrants. she represented an area where there are a lot of immigrants and the man suspected of killing her was a quiet, white, 52-year-old englishman. the police say his motives were unclear. but there are conflicts reports that when he stand and shot her, he shouted put britain first. or something like that. and also said has a history of depression and other mental health issues. and this killing has also shocked people here because guns
just aren't as common as in the u.s. and gun laws are very strict. and i think the final thing worth mentioning is that statement made by her husband. very poignant. they have two young children, 3 and 5. and not long after she was attacked he tweeted a photograph of her and said she would have wanted two things. that our precious children are bathed in love and that we all unite to fight against the hatred that killed her. she was just 41. a rising star. that was even acknowledged by her political opponents, including the prime minister david cameron who said we have lost a great star. so this is a country that it really is this morning in shock. >> shocking. >> yeah. >> not just the uk. but we're on all -- about this brexit vote and then that happens. if someone didn't hear that and -- i mean that is purely
political. so it is hard to believe someone would actually make up that phrase "put britain first" but we don't know at this point. until it is confirmed. >> and at this point police say, you know, they simply haven't got a solid motive. but this guy who is still a suspect, is in their custody. so they are questioning him. >> some of the most dangerous places in the world. and then in ore home. last place you think. bill neely. thank you. and we've got about -- how many days now? today is friday. so less than a week for the brexit vote. imf chief christine lagarde joins us at 7:00 a.m. eastern and then later richard haas from the council on foreign relations and i'm sure we're going to hear hard core remain arguments from
both. which we just heard earlier. stocks to watch this morning. oracle reporting better than expected fourth quarter revenue as sales surged. expecting the cloud support and cloud related businesses to grow more than 65% in fiscal 2017. smith and wessen raising full year outlook. the largest u.s. gun maker shipped a record 1.8 million weapons last year. mostly handguns. and revlon is buying elizabeth arden to strengthens its skin care and fragrance and expand into high growth markets like asia. and mosaic in talks reportedly to buy vale's
fertilizer unit. also hsbc will be paying nearly $1.6 billion to settle a class action suit stem interesting the household international mortgage business it bought back in 2003. i remember covering that deal. hsbc expected to take a pre tax charge in the second quarter. >> also investigating ericsson for possible corruption this china. the company is declining comment other than to say it is cooperating. >> let's get back to the broader markets. joining us now an stas oia --. you're ticker safe. i checked with becky. >> yes we are both there.
>> about whether it was safe to actually think that she's with child. which congratulations. because i've done it before. and i've had -- said wow, congratulations and the person said i had the baby a year ago. right? >> you got to be careful. >> we learn from our mistakes. >> a virtual epidemic around here. you are okay. right? anything that you need to tell us? totally confused. never mind. where are we -- as i say, congr congrats. where are we on this point? farking into the investment decisions? >> absolutely. the only thing that frankly mattered if are the last week and a half. it's all been around brexit odds whether increasing or declining and you see that baked into the market vt we really need to see
rates move high sore it's all been about the brexit. >> the show that was on before us. wilfred was asking one of the guests about the gdp estimates between now and 2030. how -- >> what? >> yeah. how it would change if there was a vote for brexit. >> -- anything that -- >> i'm asking that can you connect the dots to how a brexit, would it eventually rip sbool -- ripple into the u.s. economy? >> i think the impact would be somewhat minimal.
we actually estimate the -- >> so many dots to finally figure out how it would effect. >> but you know what it is joe, it is not just the trade issue or a confident issue but the one i'm watching very specifically is the financials issue. so one of the things we worry sa about if there is a the negative outcome a brexit vote, then what happens to the uk and the financial sector and what happens is funding costs go up. those banks have struggled so hard to restore profitability and this is immediate hit to that profitability. that is what we've seen in the financial crisis and other instances of contagion. all going through that financial sector. >> and people say it could mean the slow steady dissolution of the eu. could that eventually effect us in terms of exports? even that, even if there wasn't a eu i still have trouble bringing that home. it is uncertainty i guess. but is that a big deal thinking
all brexit all the time. >> i think it would individual companies that have exposure to the uk. my gang in london thinks it is going to be a photo finish here but they gave tip of the hat to remaining. i think if that happens you get a rally to new all-time highs this the s&p 500. >> and so we get this out of the way and off to the races for the averages here. this is what's holding it back? >> yeah i think the advance decline line, the normal and operating company only a advance decline line which rules out the interest sensitive and closed in funds and things like that, have traded out to new all-time highs. the on ambulance volume favors the upside here. if you look at the new highs very new lows. lopsidedly in favor of new highs on a daily basis. so when the indicators are
strengthening and the indices are weakening, that is bullish. when the indicators are weakening and the indices are strengthening that is bearish. my model still says we're going trade out to new all-time highs. >> i think brexit is one of the issues that have weighed on u.s. stocks but really not that much because we're you have a 3 or 4% off the highs i think the other issue with u.s. stocks is what's going to happen with june payrolls. apparently the fed never ever going to raise rates ever again. i joke of course. i think september is when they do. but if we do get another lackluster payrolls report it is going to be very challenging for stocks to make new highs i think. >> the bund today, i don't know it was on one or the other side of zero but basically zero. is that partly brexit as well?
so we won't go to negative in this country. >> >> what's baked in right now is the question have the brexit negative outcome we have the ecb thatti that'ses policy. a and. >> any comment? >> we talked about the dow theory sell signal in september. >> do you want to talking about negative interest rates? >> yeah. i think what's going on in the bond market in this country is all about capital flows. i've talked to accounts over in
germany and they figure it is better to get 15 or 20 basis points over here than negative returns on a short-term basis in this country. what's going on here is all about international capital flows. >> thanks jeff. >> september. >> ahead of her. >> just by a few weeks. >> by a few weeks. because i -- too close to call. [ laughter ] >> dangerous ground. >> danger. >> back up. >> too close to call. pretty darn close. both of you. >> we are within a few weeks. yes. >> >> he top lined me. yes we've talked about. >> i always try hide it up until this point. but i think everybody knows now. >> and okay. before we go to a break. quick sports news for you. i don't know what you guys are doing on sunday night but i now
know what i'm doing. lebron james and the cavaliers forcing game seven. the warriors never led at any point in game 6. lebron racked up his second consecutive 40 point performance. and e steph curry got ejected after throwing his mouthpiece into the crowd and berating a official. game 7 sunday night 8:00 p.m. eastern standard time. and twitter. you know, steph curry has like 300,000. that's like the trending. and there is a history of mouth guards. other people have gotten suspended for the next game. but that is not going to happen -- try that dpsh. >> yeah good luck. >> the great shot i saw -- 9:00
start but when lebron blocked that one start. he was like don't -- really? you are going too try that with me standing next to -- that is such great look. i'm telling you lebron is easte earning a lot of fans. >> when we come back a bad start to the year for gm shares. down, despite the company's upbeat guidance. ♪
"dinner!" "may i be excused?" get the new xfinity tv app and for the first time ever stream live tv, watch on demand, and download your dvr shows anywhere. gm saw record profit bus the stock is down about 14% year too date. got the chance to speak to ceo mary barra about whether she is frustrated about how wall street is valuing the company. >> we do feel the stock is undervalued but we also really focus on what we control. so really working to improve the business, put out great cars, trucks and crossovers and invest in the future and it will correct over time. part is an industry issue.
there is so much concern in the u.s. and we understand that is kind of an overarching issue for the industry. we are just going to keep performing. >> i do think it is an industry issue. we've talked to a lot of people in the industry. we've talked to mike jackson of auto nation. one thing he thinks as a whole is they are setting production targets that are overly optim t optimistic and as a result eventually some of the u.s. auto makers will have to offer bigger and bigger incentives to sell the number of autos they are producing. what do crow say to that is this. >> i think from a u.s. perspective people have been behaving fairly rationally. at general motors we only produce what the market is asking for. we keep that discipline. we keep that discipline with incentives and the change that we're really driving to lessen our involvement in fleet, especially the less profitable
fleet, and get that in balance. so it strengthens the whole business, that retail share and we're growing retail share. even this year we've seen good growth it. strengthens the business and residuals. so there is fundamentals that you have to watch every sale is not equal. and that is what we're focused on. >> when you do that, when crow do things like get rid of some of the non profitable sales or ones that were about very profitable, things to the rental fleets, it ends up impacting market share. last i red was the lowest in decades. buzz that bother you? >> of course we want growth and profitable growth but you can't just look at share at one point in time i think. from our portfolio we have a lot of new products coming. i expect that we'll continue to see improvements there.
but the fact that we've been able to grow retail share over a half a point, .6 points since the beginning of the year, i think that is really important growth. >> when you talk to somebody like a jamie diamond said earlier this month or jamie cha know said this week that they are concerned what's happening this the retail space. not talking about gm or anything specific but broader trends in the industry. what do you say to people start to worry and when they see what's happening and who the loans have been going to. >> we purchased seven years back amari credit and that was in b subprime. we also -- i look at metrics on a monthly basis what's happening there. and we are seeing. we are not see iing increase in
defaults. we're seeing a little delinquencies but then it is correcting itself. something we watch and adjust on a monthly basis. >> much more from her talking about what's been happening in the industry wlarks they do see coming what they think about the economy and what in terms of sales. all that later. >> and we're going talk about the potential fallout next week's brexit vote. on businesses in the uk and the european continent. wilfred frost joins us next. and reaction to last night's game from the manager of sports illustrated. and take a look at yesterday's s&p 500 winners and losers as we head to break. became a stay over.
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♪ welcome back to "squawk box" everyone. the countdown is on. we are now less than a week from the brexit referendum vote. what a vote would mean if the vote is to leave, what that might mean for the u.s. markets. wilfred frost joins us at cnbc headquarters. and i know you e spend a lot of time thinking about this. >> i do indeed. you say that as if it is a geeky thing. i suppose it is. but it is also a very important thing. the yield on the u.s. 10 year declining to below 1.6% in a
couple of weeks. while european equities have declined sharply, the dax down 5%. u.s. equities a bit more resilient. what about the u.s. companies with high uk exposure? some big names on the list of the top 10. ford, ebay amongst them in terms of sales in the uk. they would be effected by growth slowdown1s as well as falls in the pound. and most of the top ten the sales are predominantly within the uk so not really effected by renegotiations of trade deals wean t tween the uk and eu. what about on a sector basis? well banks are likely the worst hit as a whole the u.s. had a trade deficit with the rest of europe making retaliation less
likely but within financial services it has a big surplus making it the area most likely to see tough and vindictive response in future trade negotiations. of the top five banks goldman sachs have the highest exposure to emba at 27%. bac at 7%. the average is 14% exposure to europe as a whole. but of course the biggest impact of brexit on banks has already happened and that's delayed rate hikes and lower yields across the board and bank stocks have already responded in tune, particularly in europe. guys. >> okay. >> wilfred thank you very much. >> much more on brexit still ahead. at the top of the hour, imf christine lagarde is going to join us in an cnbc exclusive interview and more. as we head to a break a quick check on what's happening in the european markets. back in a moment. and can you explain to me why
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seesaw session yesterday. looked like it was really ugly. you know the fed gonna move again and might be a brexit and we were accelerating. down 130 points, then down 9 and then it was up like 90. today giving back a little of that but europe is strong after having a tough session i think yesterday. it did come back a little yesterday. breathed life into our markets here and there is the u.s. treasury yield curve. in fact a 1.6 in the 10 year. gets more interesting in some of the other sovereigns around the world. i think germany is exactly zero today. or maybe three -- can it be percentages of a tick? i don't know. >> right now it is time for the executive edge. lg has begun selling a television in india that has a mosquito repelling feature.
the technology is also used in lg air conditioners and washing machines. targeted at lower income consumers living in conditions that would make them vulnerable for mosquitos. >> so they are out there in some mosquito ridden place but they got a flat screen tv. >> nice. >> that is the current -- >> says a lot about the state of the world. >> state of the world. >> update on the via com stock as the world turns. sumner redstone removing five of via com's executives from the board. demon remains ceo and he and the board are expected to contest redstone's moves. what all of this means for the company, the machinations behind the scenes.
as corporate governance, is this spectacular? is there a coupe? is there a coupe and it is spectacular? low you do look at it. >> first it remains to be seen whether the nai move to o ouster the via com board will hold up in court. basically there is a court battle in delaware and the mental competence of sumner redstone will be up for debate. >> did you see the pictures they were walking him around. >> -- claiming he's mentally ip competent. >> do you think or not. >> i'm not sure. there are different levels of awareness. basically the lawsuit that was thrown out the existing board is looking to that as precedent for him being mentally competent but i they that proxy standard is probably lower than a corporate governance standard.
i'm not a lawyer i don't know. >> would you encouraged by sumner redstone is doing or not? >> i think via com's assets are very challenged regardless of who's ceo. and i'm not at all endorsing the job philippe demon has done. i don't think the stock has performed and i don't think he's positioning the company for a digital media future for example. on the other hand you could argue what would a new ceo do? you could argue they need someone more operational to reinvigorate the programming more quick. but i'm of the view that advertising is negative. affiliate views are negative. margins are compressing. almost i hate to invoke yahoo and marissa mayer butter inheriting a tough deck of cards to play at the poker table. >> when you hear about reproducing cbs and via com back together again. does that make sense?
>> for via com. cbs i think you have a very nimble company. where it is one must have broadcast network and showtime and you can go direct to consumer. via com you are salddled with 2 networks and a bundle. so why would they want to saddle themselves with that much freight and that much weight? >> i think the opposite argument was made when the two were split up. that cbs was going to be the old company, slow growth and via com had all the potential at that point. and the opposite has proven true. >> there was a 8, 9 years ago. i think a lot in media has really changed. the future of media looks to be lighter bundles, skinnier -- >> -- who is going to do the best job running this? >> here is what i would say,
becky. if you are a cbs shareholder, the stock had draultically outperformed via comes. if you are les moonves do you want your legacy -- >> if i'm a shareholder what is the solution? >> i think the solution is you need leadership stability in one way or another and somebody to come in -- >> would you prefer this to be independently owned company. >> there is a war of two groups, it is hard to say independence. what is the -- >> cbs idea for a second. is there another media company or a digital company who could say i want to own some of these brands? >> why? businesses are contracting. and to make the argument if you are a big media company like time warner. to make the argument that scale
is going to be the real answer here, i don't know if that is a winning argument. >> crazy idea. if apple really wants to be in the tv business. if you really want to be able to have leverage with the networks, why not own via com. why not nickelodeon and a couple of other brands, try build them. you may think it is completely crazy. why not try to do that? if you are google and you want to be in tv, why not use that as a beach head. >> sometimes hard to argue against the hypotheticals of silicon valley swooping in and saving the media bundle. i don't think apple or google have shown any evidence to license media content or own. yeah they have a lot of cash. but culturally silicon valley's dna is to build a platform that aggregates traffic and distribution. it is not to marry themselves to one vertical within media content.
it is really more about the consumer interface t convenience and direct to consumer aspect of what they do. if i'm apple i don't know. it really -- >> real quick before we end this. help us handicap what you think would happen in or could happen in court because as the fascinating behind the scenes drama. is it possible philippe demon could win is this. >> i'm not a lawyer. it is possible what they have done will not hold up in court. nai is national aamusements, inc. which he owns and controls and the nai board is, which she's controlling and saying she's manipulating the board to ouster to via com board. the market -- stock was up 8% and i think the market is discounting that this move does not hold up in court. so i would take the other side of the plus 8% yesterday. just my view.
it is going to be like a really ugly battle in the delaware courts and again his mental competence will be up for debate. >> and a programming note. today don't miss jeffrey gundlach on the markets, the fed and next week's brexit vote. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack.
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thanks for being with us. >> thanks for having me. >> my alarm clock set for 3:45 and i've suppreexpressed a lot frustration. and now this game, they couldn't do it an saturday. >> 8:00 start. >> 8:00 is a little better. but there hasn't been a weekend game in the finals. >> game 7 is traditionally last several years been scheduled for thursday. >> what i'm getting at is i need you -- there are questions i have that is this a test of wills between just lebron and steph curry? and if so, who is likely to prevail? even though it is going to be to be away game for lebron? has lebron been around long and tougher mentally? or is it the other guys -- they are both obviously on teams. and depending on whose there.
they were missing a guy that could have swung it for golden state the other night. >> let's start with this. steph curry is the mvp this year. that is an inarguable choice. but the best basketball play owner the planet is still lebron james. and i think he's demonstrated that in the series. there is a plausible case that even if they lose game 7 he should be the mvp of the series. and they also have the second best player of the series. in the series. chi rye evering has been the second play player and that gives cleveland a shot on sunday night.
sunday. one thing that's interesting about this, we have a game seven, and yet there hasn't been a single game in the series decided by fewer than ten points. >> right. >> so the nba gets its game seven. i don't know if we're going to get a great game on sunday night. >> after the first two games, it was like 48 points advantage to golden state. and it looked like it might go -- supposedly they were in the driver's seat. at that point, you know, when cleveland started coming back, i just sort of -- i was kidding but i was like, you know, the tv ratings and the amount of money that you make, you don't want a
4-0 series. suddenly here we are at game seven. the guys play just as hard every game. you saw what steph curry's wife tweeted and took it back. it's rigged. the officials, the money, the ratings. they want this to go seven. guys don't start dogging on "d" or anything. >> this hasn't been a poorly officiated series. this probably goes back to the suspension of draymond green in game five by fueled the conspiracy theories. cleveland has the best player. that's what you keep coming back to. also the notion of momentum. the first two games you would have assumed it could have been over by friday night, four games. but it puts the momentum into sports. that's one of the easy explanations for why things turn out the way they do. >> 54 years a drought for cleveland. i am from cincinnati. i kid around, mistake on the lake. people get mad at me.
it's an inner-state sort of reds versus indians. it would be big for cleveland to bin. the story-book ending would be that. next year it would have been even better for basketball. probably that's what people should hope for. >> it's probably the second best sports narrative out there right now behind the cubs winning the world series. that's a plausible scenario this year, right? >> right. >> imagine if you got both in the same year. >> right. after the triple crown was finally -- >> especially considering what dan gilbert did to bring lebron back. >> did it in the most dramatic way possible. they were down 3-1. they were given up for dead. and then their best player, who came back two years ago to cleveland -- >> after such an acrimonious departure. >> to bring one championship to cleveland. not two, three, four. one championship, pulls that off. >> can you talk golf at all?
>> sure. >> so did you watch any -- it was hard to watch yesterday obviously. >> there wasn't a whole lot of it. >> enough to see the par 3s are 340 yards. no, they're not. >> the greens. >> the greens! the one jordan spieth shot where it was 20 feet away. by the time it stopped -- it was moving like a snail and got to like three -- the greens -- now they're wet. will they dry out? supposedly it will be a great weekend of weather. >> they'll dry out. the greens will become very, very slick and impossible all over again. >> it's hard to find a course that tests these guys anymore. this likes one. >> the open does it every year for the most part. >> oakmont, last year it was weird. no one knew that course. >> exactly. >> how is fox doing? i'm not used to them yet. >> they'll be okay. it's anchored by -- i think joe buck is -- >> even at golf. >> even at golf. he is a curious mind. >> they got curtis. who i am used to listening to.
>> what about si.com. why are you launching a tech section? >> think about where analytics was ten years ago when michael lewis wrote money ball. any publication had to understand the nexus between analytics and sports. 2016 we find ourselves in similar place with tech. that you have to understand tech to really understand the sports story. >> i don't know who he's got in the open yet. some geeky tech question about sports illustrated. >> he's here. he has a new tech site. >> that doesn't work for me. who do you like in the -- who do you like in the u.s. open? >> i like jordan spieth? >> you do? >> yeah. how about rory. >> i like rory too. in the open you like any of the best players in the world. >> can you hit a 4 iron 240 yards? >> oh, no. >> chris, thank you. great to see you. >> you got a great tech site. check it out on si.
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will the u.k. stay or go? global market tension growing as the u.k. gets ready to hold a referendum vote to leave the 28-nation european union. a warning from the head of the imf and exclusive interview with christine lagarde. the big boards plan to keep up with rising exchanges. thomas farley is pushing back against the possible approval of the investors exchange. his plan to simplify the trading system. is the auto industry driving into a bubble? our interview with gm ceo mary
barra as the second hour of "squawk box" begins right now. ♪ >> live from the beating heart of business, new york city, this is "squawk box." ♪ >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with rebecca quick and andrew ross sorkin. the futures at this hour have been around the flat line. red, though, down 13 points on the dow. three points on the s&p. 4 on the nasdaq. currencies this morning especially the british pound to get clues on thursday. 1.42, not 1.46 but better than thursday. there were betting markets favoring remain. recent polls seem to have the momentum for leave. but the pound might have the best idea of what's going on, and that's been a little bit stronger recently. gold, this is the first down session in the last eight, i
think. coming back a little at this point. yeah. and take a quick look at oil, which was down big yesterday but is rebounding a little bit today. i think it's back above 46. >> still below 47. barely. talk a little econ. st. louis fed president making comments and steve liesman joins us with the details. >> st. louis fed president jim bullard slashing growth and funds rate outlook for the next two and a half years. he says om one rate hike is needed until or through 2018. he supports a 0.63 rate hike saying the u.s. is at a new economic regime. here is bullard's new forecast, looking for 2% gdp growth, 4.7% unemployment, inflation around 2%. there is the funds rate at 0.63%. he originally said the funds rate would go up to 3.50.
he say productivity likely to remain low. he was the -- apparently the dot that we saw from the wednesday forecast from the fed that was straight across the line there through 2018. and really, it goes along with what fed chair janet yellen was saying about this new normal for the u.s. economy. i guess it's part of the fed throwing in the towel here when it comes to this idea of accelerating u.s. growth and higher rates down the road. >> steve, bullard was the one who is still only looking at rates being 0.5% in 2018? >> 0.63, to be more precise. >> just above 0.5%. a lot of people were speculating it was charlie evans or one of the more dovish officials. >> i thought it was brainard, the fed governor. it tells you there is more support on the fed for the low funds rate and keeping it low. he says we've shifted to a new regime. the old forecast model we had
worked okay for a couple of years, there was a little bit better growth, north of 2.5%. now that we've settled on the 2% growth, it's time to let the model fit the reality of what's going on. he says under the current regime this is the best guess for where the economy will be going. goes along with what yellen said when i asked her how have you brought down rates in the future. she said some of the head winds that we thought were temporary look like they'll be permanent. >> the headwinds are the fed itself. >> yellen didn't mention that, joe, as one of them, joe. i can see how you think that. >> there will continue to be headwinds to economic growth. >> low productivity in the u.s. weak global growth. >> chicken and egg. >> we didn't mention the fiscal regime but that's something other fed officials have talked about, sort of the lack of
fiscal stimulus from the regulatory side or from the spending side. >> they're going to keep positive rates, though! >> it's positive, joe. that is correct. >> keep it positive. making a stand. >> looking for small victories, joe, you can notch that in your belt right there. forecasting positive. >> lenders are not going to be making money on people. >> borrowers. >> right. right. we'll speak with christine lagarde in a moment. i think you were here yesterday when drew madus brought up the idea of the reason -- the chicken and egg scenario. are we keeping rates low because rates are negative in europe and japan or are they negative because we are not moving? what is the answer to that? >> i tend to -- i think i said at the time i think it's more japan and europe keeping the lid on where the u.s. can go. they are the ones who went negative.
bir by the way, they were the ones late to the stimulus. the u.s. is ahead of those folks. the envy of the developed world, because they moved earlier on fiscal stimulus and on slashing the funds rate -- and you remember trichet hiked. they talked about the fiscal austerity. >> i guess that's part of the reason our fed is not eager to raise rates. >> what they did in the early part of the financial crisis and japan and 1937 haunt this federal reserve. >> steve, thank you very much. >> pleasure. meantime, imf chief christine lagarde speaking earlier this morning in vienna, urging britain to vote to remain in the european union, stressing the benefits of the u.k., that it enjoys as part of that bloc. the brexit vote is less than awe
aweek away. >> let's get straight to christine lagarde, managing director of the imf. christine, thank you for joining us on school box today. i listened to your passionate defense of the best parts of europe today, but i also heard you criticizing some of the ills of europe as well, concerns about security, concerns about joint thinking, concerns about growth and risk sharing as well. you understand, i think, why british voters and other voters across europe feel disenfranchised and unhappy with the european situation. >> first of all, i obviously want to express my sympathy and say that our thoughts are with the family and the friends and those whose lives have been touched by jo cox. and that's a very sad moment. equally and paying tribute to what our teams have done, and in the interest of good information, what i did today in vienna was to actually explain
not the dark side, not the fear side, which brings all the economists of the world pretty much together to say that there are downside risks in a choice to withdraw, but i wanted to identify the benefits, job creations, additional income, the additional trade, the additional investment, vibrancy, the boyens, if you will, that many members of the european union have benefited over the course of time, including the united kingdom. so that was my focus today. there have been significant benefits arising from being part of a single market. >> yet people are looking at the negative side. they have grave concerns of -- you mentioned jobs there. european unemployment is pretty much twice what it is in the united states. a young spaniard, around 45% of people are unemployed. they're not seeing the benefits.
this could create a domino effect, wouldn't it? if the british go, wouldn't you think other nations would probably leave the eu and euro zone as well? >> i remind you the u.k. has probably one of the lowest unemployment rate in the whole of the european union. to argue that it is because of the european union that the unemployment rate is what it is, it is not the case. and you know, i remember decades going when the unemployment rate in that country was pretty high. but, you know, be that as it may, people will have to make up their mind and voters will have to decide for themselves what they want and what they need to do. my duty as head of the imf is to report back not just to the u.k. but to all those interested and involved what the outcome is and what the benefits have been. because there has been a huge focus on the negatives, the
downside, not much on benefits and upside from that. it's a concern, by the way, not just for the u.k. it's a concern for the world. i have not attended any meetings in the last three or four months with any leader, with any policy makers, with any body, where the question of the impact of the u.k. withdrawing was not asked. >> madam lagarde. critics say the ifm as recently as 2013 was completely wrong about the united kingdom and the policies there. it has been on areas such as greece as well and that the economists are making guesses rather than factual estimates going forward. criticisms about the methodology of the economists you mentioned and indeed the imf. >> it's a compelling case when you have an overwhelming majority of economists from all obediences and all schools, ages, generations and background, to actually agree
directionally on the outcome of a particular decision. that is where all of them are. it's going to cost. it's going to be negative for income purposes. it is going to be reduced trade, most likely, as a result of uncertainty. i mean, those are blatant facts. when one economist disagrees with another, that's life. that's often what they do. i say that happily because i am a jurist by background, not an economist. but when they all agree with the exception of one particular group, that's a pretty compelling situation. yes, we all make mistakes. all of them together at the same time in the same direction? i don't think so. >> i'm going to quote you. you said i'm not up to the level of my top experts. talking about your economists. but i tend not to be fooled by then. if you're not fooled by them, maybe the british people and the european people may not be fooled by them as well. >> i have full trust and confidence in the wisdom of the people. >> is there a chance that europe can be galvanized by a brexit?
there is a lot of indecision as you mentioned, a lack of risk-sharing, a lack of inclusion, a lack of willingness to go forward and have measures which prevent crisis. if there were a brexit couldn't it galvanize europe to be quicker, to be better? >> i think the united kingdom has been, is and i hope will continue to be a champion of everything that you've said. faster, quicker, less bureaucratic. more efficient, more focused on competitiveness and efficiency. i think europe is going to do that anyway. there are many pluses about this unbelievable construction of bringing countries that were hating each other, that were killing each other, that were at war with each other, to actually come together to build a peaceful and prosperous territory that forms a single market. you don't see that in history. since the treaty of westphalia there has not been as ambitious
a scheme as that. is it perfect? of course not. is it perfectible? of course it is. can it be improved by it being together? yes, indeed. >> do you fear that if the british go there will be a domino effect? we've seen the association agreement with ukraine. do you fear other nations and other populations, the vox pop ulye, will take other nations out of the eu? >> we have been debating brexit, quote-unquote, at length. i'm very concerned about what's happened in the u.k., the respect we should pay to those who are suffering at the moment. to debate ad nauseam at the moment is not the right thing to do. >> it has higher unemployment and high debt levels and some would say in the height of the crisis. is europe on the verge of
another crisis given the lack that we saw the lack of capital in the banks which are supposed to be recapitalized now? >> you can tell another story. you can look at the fact that europe is actually recovering. you can look at the fact that the growth of -- in the euro area is getting better and strengthening as we speak. you can look at the mechanisms that have been put in place to resist the next crisis, putting in place the european stability mechanism to actually have 550 billion together to actually resist a crisis, something that was not in the cards only six years ago when the crisis hit. so europe is in the process of strengthening. it's work in progress. it's not an old institution. >> finally, i know you don't want to get involved in whether they should or shouldn't come out, but mr. trump as well has said a lot of things which would probably fly in the face of what your advice would be. less protectionism is what you
want. more wars is perhaps what mr. trump wants. do you fear you'll use u.s. leadership and global impetus to open up free trade? >> when we look at the benefits of free trade -- when we say free trade, by the way, there are w.t.o. rules. there is a framework in which trade is actually conducted. it has demonstrated enormous benefits. when you look at the hundred millions of people who have been lifted out of poverty, of anger, meaning being, you know, hungry, wanting to eat, free trade has been a critical agent of that. so what is better than free trade as framed in the governance that we have, to lift people out of poverty, to improve competitiveness, to impro improve investment, to make sure talents can be expanded on other
than just a domestic and exclusive circle. that's what we have. it has to be of benefit to all, not just to a few. it has to be expanded. >> no concerns about a trump presidency, then? >> i'm not taking any political stand on any particular person, and all we have to do is assess the economic responses that are proposed by all. >> i really appreciate your time. thank you very much indeed for joining us. madam christine lagarde, the m.d. of the imf. back to you guys in the studio. >> steve sedgewick, thank you. that was riveting. you do say you could line the economists up end to end until they're all the way around the world and still not reach a conclusion supposedly. i don't know. consensus of economists? nah. sub prime can't possibly turn into anything serious. i love consensus. tom farley, a new exchange
in the fight over high-frequency trading. voting today on the approval of a new national stock exchange trading platform hoping to compete with the likes of nasdaq and the new york stock exchange. the company wants to impose a quote speed bump to slow down trading to give ordinary investors equal footing with more sophisticated traders. joining us is tom farley, president of the new york stock exchange. a lot to debate about all of this. you have been outspoken, if you will, about how ie x which some think would be good for shareholders, at least it's been presented as leveling the playing field, as something that is not going to level the playing field. explain. >> first of all, thanks for having me on. great to see all of you. and joe, my good friend, congrats on 25 great years. >> thank you. see, we were just doing the 20 years. >> it's 25 years. >> he's a very nice guy. >> i'm sensitive. he is. we did the 20-year thing. i didn't hurt anyone for "squawk box." i didn't hurt anyone with the
gavel. and you gave me the beautiful -- gave us all the beautiful -- >> i know. 224-year tradition. it's a great tradition. you didn't screw it up. >> i didn't. i plan on making that anniversary two. 2024. >> 2025 next year. come on now. film the show from the floor next year. >> done. >> we can do that. >> big anniversary. >> cool. >> so -- >> thanks. ie x. it's a smaller, niche focused. they're asking the sec to change the rules so they can become effectively a dark exchange. what dark means is when an investor, whether a farmer in iowa or mutual fund manager in boston. when they put a price on the exchange it won't be distributed widely to the world. they want to use sophisticated technology to slow some orders and speed up others. i hear that and that sounds a lot like what's going on in the last 20 years as the markets have gotten very complicated,
and we think we should stay -- we should go back to basics, the other way. focus on simplicity, focus on transparency, and that's been our area of focus. >> have you had a conversation with the ceo? >> many. >> the intent of what he is trying to do is to level the playing field, right? that's what he wants. you guys have -- and others -- have suggested that ultimately it won't level the playing field. that's what i am trying to understand. >> in the early days when i first arrived at the new york stock exchange i was trying to find ways to work with brad. because what he intends to support, if you listen to the words, is the investing community. >> right. >> but somewhere words and deeds diverged, and it would actually result in a much more complicated market. whereas, we have stayed on the message of how do we keep the message simple. we have gotten rid of order types and advocated for less fragmentation. it's ridiculous that there are 61 places to trade ibm shock.
>> the idea that certain traders are able to get access and trade faster than others, in part because they can pay you more, isn't that -- shouldn't we look at that and say there is something wrong with that? >> no. there's no such thing. there is absolutely no such thing. >> it doesn't exist? i can't pay you more to -- either you pay you or somebody else more to be closer to the exchange to my fiber cables can get there faster and if i press the button i can actually, you know, execute the trade faster? that's -- the whole book michael lewis wrote is not real? >> everyone on our exchange has access to everything that we offer. all of our services. whether you pay for them or not. there is no exclusive access that only some people have and others do not have. >> no one can trade faster than somebody else? >> no one can trade faster than someone else. >> isn't that what this is all about? >> is it a level playing field right now? >> absolutely it's a level playing field.
the problem is, it's just complicated. we just spent two minutes -- i didn't even fully understand your question and we're experts on this. >> you hear that from a lot of guests. >> thank you, joseph. thank you, joseph. >> it's very, very complicated. >> tom laid out a bunch of things that the nyse has been doing to try to level the playing field which suggests it's not a level playing field. >> i understand what andrew was talking about. the whole book was based on the proximal location of where your server was. and then some people could see something start to happen and get in quick enough to take advantage. it was like mini front-running or something. that was the perception. >> yeah. i came on your show two years ago and said perception is reality, meaning, if that's the way -- if that's the way the public feels about it, we need to -- we need to go ahead and get in front of it. >> let me ask you the other side of this, which is, as part of the i.e.x. putting this proposal forward to get in there, they apparently had to release all sorts of information about how their system worked. and then they will say, you know
where i am going with this, that the new york stock exchange has now tried to copy some form of what they are doing. is that true? >> so here is our issue with i.e.x. it's very particular. there is one thing in particular. they're proposing to slow down some order types and speed up others. we don't like that at all. >> that doesn't sound like a way of leveling the playing field. >> that's what's been driving people crazy about the markets, that it feels like we are not getting a fair shake. >> who would get sped up by this? >> they're proposing that dark orders will be realtime. the orders placed primarily by very sophisticated, technology-enabled traders would be realtime. all the other orders coming in would be slowed down. >> none of this sounds like it will help me if i am somebody trading mutual funds or doing -- >> no. quietly, we don't do a ton of marketing about this. i come on your show once every six months. quietly the market has been rewarding us. our market share has gone from
20% to 25% over the last two years. we've gotten rid of a couple dozen order types. the market is rewarding us. top 20 ipos in the u.s. in the last two years. every one has been on the new york stock exchange. go ahead, joe. >> i can remember -- how long you been in charge now? >> two years. >> there's like one or two days that were like -- you probably wished you weren't in charge. you remember those days? >> yes. >> have things been done that, like -- that you can actually say this, this, this and this, that this can't happen again, those situations that got you where you were like on every financial network throughout the day talking about how things are going to be okay? is it all fixed? >> absolutely. and -- >> all fixed. >> one day in particular which was around about a year ago. it was a tough day. >> i remember. >> the thing to point out, even on that day, investors were not
hurt, the market traded around us smoothly. we were back up before the close. our systems -- we operate three equities exchanges two options and the bond platform. so on and so forth. the markets, as i have said, are very complicated. we, like all other exchanges have issues. we're the new york stock exchange. when we have an issue there are helicopters circling the building. even when we had the issue a year ago, what we saw when the market traded around us, spreads widened because the new york stock exchange, because of our unique model we have tighter spreads and bigger models. >> thank you. coming up, richard haass, council of foreign relations president.
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surged. the ceo saying that she expects cloud to grow by more than 65% in fiscal 2017. smith and wesson raising its full year outlook after fourth quarter results beat forecast. the largest u.s. gun maker says it shipped a record 1.8 million weapons last year, most hand guns. sumner redstone removing five directors including ceo philippe dauman from the board. he and abrams, the trust that will assume vogt control over viacom and cbs if redstone is deemed incompetent or dies. schwartz, mcarvy and frederick solerno are also out. here is look at the new board members. ken lerer, chairman of buzz feed and frequent guest. nicole seligman, judith mchale, former ceo of discovery communications. tom may, the chairman of
eversource energy and ron nelson, chairman of avis budget group. viacom ending the session up 7% yesterday and then extended the gains in the after hours. you can see the stock is flat this morning. british labour lawmaker jo cox died after being shot and critically injured. 52-year-old man arrested. some witnesses say the suspect shouted "britain first" or "put britain first." i don't know if that's been confirmed. it would have been a reference to the far-right political party of that name which supports britain staying in the european union. the u.k. referendum vote is less than a week away. and tensions are running high for global markets. joining us now to talk about what a brexit could mean for the u.s. and europe, richard haass, the president of the council on foreign relations. put britain first was not for remain. it was for -- that was the slogan for exit. so the remain camp -- i don't
know if that -- i think that's backwards. the remain camp immediately started blaming brexit -- i don't know -- brexit people for. i don't know at this point, richard. do you know anything we don't know? >> what it's going to do is cause a couple of days' almost time-out in the campaign. there is a big debate about how it might affect the momentum. the polls over the last few days had the leave side slightly ahead. who knows how this will affect things. >> whenever polls go up against, like, betting data, the polls never really win. and betting data never got below, i think, 59 stay. and it's back up to nearly 70 stay, and the pound rallied to 142, 143. that seems to indicate that a remain might be back as sort of a, you know, very close finish. but remain maybe is in. >> the answer is i hope so. i think it would be better for
britain, europe and the united states. economically, politically, strategically. i'm not sure because the pop populist tenor argues for leave. th >> let me read something to you. i am not saying this appeals to me. this is a tweet. if they do vote brexit. thank god for the end of the euro crattic dictatorial superstate. think of britain's history and their contributions to the world. if you were a brit and you were being, you know, managed by unelected bureaucrats from brussels, you could -- you would chafe, wouldn't you? i know you're supposed to, like, for the good of the -- of everybody else you're supposed to put your own concerns in the back seat -- >> i understand the appeal of that. >> so do i. >> britain has economically benefited virtually more than
any other member of the eu. its per capita growth has gone up even more than germanys. the standing by benefits to euro britain for a stable europe. the eu has helped to knit together europe. it took europe off the geopolitical map. that was fantastic. britain has benefited in every -- >> people would say it's not knitted together. it's jury-rigged. there is no single financial authority. look what happens over there. >> this is a democratic deficit. having the monetary policy without the fiscal policy was a colossal mistake. >> cart before the horse. >> one other thing. united kingdom will cease to be the united kingdom if brexit happens. >> because of scotland? >> scotland will leave. scots can take the high road. unintentional. i also worry -- i used to be the u.s. enjoy for the northern ireland peace talks. i worry this will essentially upset the balance in northern
ireland. i think the future of the united kingdom as a country is at stake. >> what about the argument, maybe this sounds opportunistic or selfish if you're britain. all the great benefits of this have already accrued to the country. meaning you look out the next 20 years and you can't accrue the same type of benefits at the same rate that they have the last 20 years. >> economically that's probably true but it's probably because of the prolonged long growth. you still want your country together. that's a good benefit. you want to have a larger role on the world scene. england or britain an its own has a smaller voice than britain through europe where it can be one of the most important voices inside european councils. britain is now just too small to play a large world role as an independent country. >> richard, you bring up the populism that's per vent not just in europe and u.k. all over the world. seems like there is a pushback
between what people see and the elite establishments. how do you handle that? how does it change who we are a decade from now. >> i think that's bun one of thg changes to us. we see it here with the debate on trade. with donald trump and bernie sanders. you're seeing the establishments -- >> don't trust washington, don't trust the media. don't trust bankers. >> you don't trust institutions. anti status quo bias. a lot of people are scapegoating different things. it shows anxiety -- >> and frustration with where things have gone. >> the lack of upward mobility has been a real thing. there is a real concern also about jobs. it's not simply the numbers. people look out and you -- you've talked about it on the show, things like ai, robotics. 3d printing. i think there are real pressures about job displacement. it's a big question for britain and ourselves and others. how do we maintain high levels
of employment. how do we maintain social trafr tranquillity and keep populism at bay? >> heard at a function last night of someone making that case. 29 states have trucking as one of the main job providers. something like 29 states. and there are already some trucks, i guess -- others have self-driving trucks. the day could come. you're talking about the main employer in 29 states. you know, you're looking at me like i told you so, aren't you? >> i have been talking about it. you can look at him. ask him. >> every other time, every other time this -- you know, that it's happened -- there was no way we were going to have enough jobs after you got people not having to weave cotton together by hand. get machines to do it, it will put everyone out of work. the people who were doing it then have trouble, but the subsequent generations seem to have other stuff that comes along.
is it different this time? >> it's potentially different because you have globalization as well as tech combined. and the educational demands and the training demands on jobs that exist or come into existence will be high. the gap between where we're educationally preparing american workers and where they will need to be is enormous. we have to think about how to close that gap. >> and that's not an overnight solution. >> people are living longer. they have to accumulate more of a cushion to get through life and have 10 or 15 jobs in the course of a career. we have societies have not structured ourselves to meet that sort of a challenge. >> that's horrific. >> the only other thing that gets me -- we had christina lagarde on earlier. she went in on a list of economists that all -- she actually made it that because the consensus, ten out of ten economists say it wouldn't be a good thing, that you can take that as a scientific fact. this isn't just a real science.
>> brexit? >> yeah. >> this isn't even a real science. this is economics, which you remember 2006, sub-prime, there is no way that sub-prime could ever -- 5%! no way this could ever -- 100% of the economists say that as well. that causes me -- in the stock market we have learned consensus is usually wrong. in this case i wish there were a couple economists who said it would be a good thing. >> sometimes crowds do have wisdom. >> how do you know when? >> you can argue over the degree. it's hard to argue over the direction of the arrow. >> the other thing, i guess if i really look deep into my soul i guess that, even though it probably wasn't the greatest idea from the start, once you have done it, it's hard to go back. >> hard to go back. >> they could have done it in a better way. the whole european union, i am talking about. >> the european union has made an enormous contribution to history. when originally germany and france came together in the coal
and steel community in the '50s, it was to make the concept of war unthinkable. to so knit them together. it was a remarkable achievement. what we have seen in recent years. the biggest single mistake, creating the monetary union without the fiscal underpinning, it's no longer in sync. >> when you have germany and what germany's interest rates, germany's currency and then countries that don't deserve those interest rates or the strength of that currency, who knows what is still lurking underneath all that, under the service. >> the elites that drove a lot of this got out of touch with their own publics, public support for europe, which used to be large, has now become more narrow. you possibly couldn't pass a referendum about europe in many countries. >> you have immigration issues, security issues. everything with syria. >> exactly. the timing could not be worse. >> i mean, it's not an apples to
apples comparison. but the united states of north and south america, think if we had venezuela and argentina -- think if we were one union with the same currency and interest rates. >> brazil. >> impossible. impossible. i mean -- so even if it's not quite that bad, any of the things that you can see that would be issues in that are being reflected over there. >> this is -- again, it was more of an idealogical, philosophical thing that got out for in advance of both publics and also about facts. they've put themselves in trouble. >> if i am in finland, richard, or in a northern country where it's dark all the time i'm going to work 10, 12, 15 o hours a day. if i am on the amaulify coast i am not working. mykon mykonos? are you going to be in there writing computer code? >> the united states of america have done okay. the united states of europe have
not done so okay. >> different languages and cultures. all these long-existing -- >> would you be voting for -- >> by that, you think detroit would be doing better than california. >> i always vote for breakfast but -- >> for brexit. >> you put your finger on a big thing. this has become a populist thing, it's equivalent of a buy election. it's going to be one of the ventings that has lasting effects. >> you want to compare it to what's going on here? >> if you added up the support for sanders and trump, it's similar. >> do you think it's being a gadfly and they want to vote that way or that they talk that way but they won't vote that way. >> i hope that when people actually get into their equivalent of the voting booth they would vote to remain. english culture would lead you to think they would. that's what happened with the
scottish referendum, polls were way off. at the end of the day, a small conservecy approach. >> i'm concerned how it affects st. andrews, the course itself. i couldn't connect the dots what could happen with getting a tee time. >> the implications for the ryder cup. >> exactly. exactly. >> took us ten minutes. >> thank you, richard. when we come back we got the chance to sit down with mary barra at the conference yesterday and asked her if she was concerned about a potential bubble building in auto industry. we have her answer to that and more after the break. futures a little weaker today. this comes after the market staged a comeback yesterday. right now the dow down 18 points. s&p after 3. nasdaq down 5. "squawk box" will be right back. with handles designed here, made here, shipped from here, on this plane flown by this pilot,
welcome back to "squawk box." after the excitement from the fed and other central bank meetings, one more big report to watch today. may housing starts is coming up at 8:30 a.m. new construction expected to have slipped last month after the surge in april as buildings ramped up activity on single and multi-family homes. building permits expected to rise at a slower pace than in april. as we head to a break, check
all-time record. that number, combined with the fear of some industry watchers that auto loans may be easier to get than they should be is starting to raise the question is there a new bubble that's about to burst in the auto sector. i spoke to general motors ceo mary barra at the wired conference in new york yesterday about what worries her. >> we watch about 20 major indicators, and over all we think the strength of the u.s. economy and the consumer's account is pretty strong right now. what we have also looked -- because we have studied 60 years back. no one can predict it. generally it's externally driven. so it's an event that causes a loss in consumer confidence that then starts the process. but barring anything external, macro, driving it, we see this kind of mid '17 going for a few years. >> we did see the fed decide not to raise interest rates. >> mm-hmm. >> i'm guessing an industry like yours likes seeing lower interest rates for some time to
come. >> that does -- provides more afford abl affordabili affordability. people buy more vehicles and that's good. >> one question the analysts raised is the idea whether gm and other car companies can navigate a downturn. nobody can see it coming or knows what happens. i i have seen calls from investors who would like to see additional buy-backs. when you're trying to figure out the balance sheet and come up with buy-backs how do you put that in and decide what to do? >> we have been very disciplined. we've maintained our 10 to 11-unit break-even point. the first thing that happens, when the market starts to decline, all the inventory unwinds. it can be pretty -- it happens pretty quickly. so keeping a very disciplined inventory level, improving our quality of sale with retail. those are all things we are doing because i totally agree with you, we can't predict when it's going to happen, but we can
be ready. what is also fundamentally different is the strength of our balance sheet. and the costs and the debt is just -- we have an investment grade balance sheet now that puts us in a much different position. >> we also got the chance to talk with mary barra about what she sees as the car of the future and who will be building that car. more of that interview in the next hour. scary moment in walmart in phoenix. video after the break. guest host and founder of kadman, sam waxman. bond king jeffrey gundlach will join steve wapner. i laugh, i sneeze...
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a phoenix, arizona, walmart was evacuated after a group of people set off fireworks inside the store. were you -- was he in town? fire crews were called to the store after employees and customers reported the blaze. the fire was extinguished, luckily, before it spread to a nearby charcoal and lighter fluid and propane section of walmart. fire investigators believe three or four people were involved in setting off the fireworks, and the police are now looking for the suspects. like johnny knoxville or the
new this morning. a red flag from the fed. st. louis fed president james bullard slashing his growth and rate outlook. his comments straight ahead. the future of pharma. sam waksal is our guest host. we'll get his take on valeant's slump. embattled start-up theranos. sumner redstone reshuffling the board in the latest chapter of the saga. live report from paramount studio as the last hour of "squawk box" begins right now. ♪ >> live from the most powerful city in the world, new york, this is "squawk box." nothing better than a hummingbird. welcome back. "squawk box," here on cnbc, first in business worldwide. i'm joe kernen along with rebecca quick and andrew ross sorkin. we're about 90 minutes away from the opening bell on wall street.
futures right now have improved a little bit, still negative. just fractionally, dow only down 3 points. markets in europe which were part of the -- of the reason that i guess we ended up so nicely yesterday. and they're up today. they were up quite a bit more earlier. they're moving around. >> germany and ftse were up by 1.25. >> in asia overnight, though, quick look. probably better to look at a currency board. japan up 1%. last we looked the pound was somewhere 1.42.5. we fixate on things in the media. thursday's vote in great britain -- in the u.k. about whether they stay or not is really dictating a lot of the trade. almost back to 1.43 now on the pound. that would indicate to some that -- remain is likely.
among our top stories this morning. st. louis fed president james bullard slashing his growth and his rate outlook. bullard said that only one rate hike was needed for the next two and a half years and he said 2% growth is the most likely forecast. as joe mentioned, we are now less than a week away from the brexit referendum vote. imf managing director christine lagarde weighing in on the brexit. >> it's going to cost. it will be negative for income purposes. it will be reduced trade, most likely, as a result of uncertainty. i mean, those are blatant facts. >> we'll get the may housing starts numbers in 30 minutes. new construction is expected to have slipped last month after surging in april as builders ramped up activity on single and multi-family homes. building permits are expected to rise, but at a slower pace than in april. the campaigns for next week's brexit referendum have been suspended after yesterday's
shooting death of british parliament member jo cox. bill neely joins us right now with more. bill, while we've seen debate halted for now, you have to assume, since the vote is six days away, it will pick up soon. >> yes. it's been suspended for one day. jo cox was an active campaigner for britain to stay in the european union. this murder has stopped politics and it's completely stunned britain. it's the first murder of a lawmaker here in a generation, the first-ever killing of a female member of parliament. jo cox was almost universally popular. elected last year. huge energy, a young woman with an infectious smile and brutally murdered on the street by a man with a hunting knife who then shot her three times. it does not appear this was a case of islamist terrorism but detectives are investigating whether it was politically
motivated. she had been an aid worker for most of her career in some of the most dangerous parts of the world. afghanistan, darfur. in politics jo cox fought hard for the rights of immigrants. she represented an area where there are a lot of immigrants, and the man suspected of killing her was a quiet, white, 52-year-old englishman. the police, though, say his motives are unclear. this killing has also shocked people here because guns are not as common in the u.k. as in the u.s. and gun laws here are very strict. she had two young children, 3 and 5. not long after she was attacked her husband tweeted a photograph of her and said that she would have wanted that we all unite to fight against the hatred, as he put it, that killed her. jo cox was just 41. a politician who might have gone to the very top in britain. and that was acknowledged even by her political opponents, including the prime minister, david cameron, who said we've lost a great star. but as you said at the
beginning, david ram ccameron ae other politicians have suspended campaigning in the vote next week. >> thank you, bill. corporate news this morning. viacom's board reshuffled. the latest move. jane wells joins us. she is outside one of viacom's biggest assets, paramount studios. bring us the latest in the soap opera. >> the reshuffling may get unshuffled. redstone guys, reportedly visited the studio last week but didn't get out of his vehicle. the studio could be at the center of the board room brawl. vice president shari redstone reportedly denied access to information about a potential sale of part or all of paramount. so yesterday her father, presumably fired five board
members including philippe dauman. he is still ceo for now, but not the chairman. a delaware court has to approve these removals. it looks like the fired board members are not leaving. they're suing. board member fred salerno leading the faction asking the court to keep the current board in place for now and to quickly negate the redstone move to fire them. salerno saying redstone would not have done this and saying his daughter is, quote, the puppet master pulling the springs. investors seem to like it. stock up. former ceo tom freston, no fan of dauman's leadership talked up some of the new board members like kenneth lerer or judith mchale who worked with freston back at mtv before she went to run discovery communications. >> it's fair to assume that, with clear management direction, with this reconstituted board that's going to certainly want to hit the ground running and take quick action, that there
will be positive things happen for viacom in its future. >> well, analysts seem to want change. btig has upgraded viacom to buy. rbc capital to a sector perform. that's an upgrade. wells fargo out with a report that says, quote, is this drama coming to an end? maybe, guys. we have to see what the court in delaware says. back to you. >> thank you, jane. we appreciate it very much. we'll watch for the next installment of this drama. i assume. to our guest host. joining us now. want to tell you what we're going to talk about with dr. sam waksal, who is the founder of biopharma. former ceo of imclone. here is what you -- we only have an hour too. talk about valeant, which for a long time -- you can go all the way back to stuff you said to mike pearson about his business model. we'll talk about valeant, theranos and about the bad rap
that all drug companies got from shkreli and valeant. at this point, i want to talk about the way the two political parties are viewing drug pricing and whether that's -- what that says about our future of innovation. and you are a person who can speak to all these things. why don't we start with valeant and touric -- >> touring. >> congratulations, 25 years. >> i have known you for that long. >> that long. >> he interviewed me probably right when he started out as a young boy. >> i wasn't on tv. it was for some thing on the internet. >> they had the internet back then? >> no. >> that's right, it wasn't the internet. you're right. it wasn't. i think it was pf -- like 1992. >> but he had the same hair. he's very proud of his hair. i have lost more because -- >> i had it retrofitted a couple times but the seam is still right back here, if you look closely. >> so you told mike pearson --
he said this is a good way to do things. >> well, look, you know, valeant, touring and all these companies, for our industry, are not ones that we should hold up and say this is part of our industry. our industry is a very split industry, and, sadly, our political parties -- the world in general looks at these companies as if they are a monolith, and they're not. so you've got generic companies. that's one game out there, and it's great for consumers. you get products like lipitor going off patent, and they become generic, and pricing goes down. then you've got companies like valeant and like touring that played a different sort of game, and it was a game. it was a financial game. it wasn't an innovative game. they got products which they could up prices on which didn't have competition, which were branded generics.
and that industry -- those kinds of companies, have actually hurt us. hurt us dramatically because people believe that that's what the pharmaceutical and biotechnology industries are about. i hear, you know, questions here on the show about controlling pricing, about legislating what people want to do. >> i know. >> it's scary. i don't know why you do that. >> sam, just -- >> i'll answer that in a second. but go ahead. >> we had bethany mcclain last week. vanity fair. i said, look, are other companies doing this too? she said yes. that's why the smart money got lured into it, because it's something everybody is doing. is that incorrect? >> valeant did something -- >> they're on steroids with what
they've done. >> what valeant did was a clever financial play. mike pearson, mckenzie, a smart, smart guy. he took an old company -- icm pharmaceuticals. milan ponish built the company on a drug and owned companies in central europe. >> i forgot. that was also a scam. >> he was simultaneously the ceo of icn and the defense minister of yugoslavia. rich bye was on the board making sure everything was okay. >> and it was a common substance -- >> it really worked with interferon to treat hepatitis c at that time. but what was interesting was he was thrown out for a number of reasons. and they brought mike pearson in. changed the name. reversed merged into a canadian company, biovale.
that was a canadian, barbados irish company. his tax rates were about 10%, right. then he layered debt on the u.s. piece, and it was a financial -- >> bethany was talking about raising prices. >> look, everyone -- look, over the years people raise prices, but when a pfizer raises prices on an innovative drug like lipitor, you know, at its height it was a $14 billion drug. it was an important drug. and then, it went off patent and it's gone. so there is a finite amount of time -- >> can i ask you this question. why i've taken certain positions that i know you would be on the other side of, which is to say that i would completely and love to believe that this whole thing is a free market and really is a free market. the problem or the challenge is twofold. one is that, in the united states it's a free market, but basically everywhere else it isn't. so we are a beneficiary to some degree of the free market given
that we live here and get access to the drugs early. that's a benefit no doubt. on the other end we are losing and effectively paying for everybody else. so there is a question of how do you think about that? >> we do mpay for other people. we also give them money for their defense systems, et cetera. >> for now. for now. until president trump. >> with the caveat that, even with single-payer systems in germany, often in past years prices were higher there than they were here. >> the other piece of it is is that, even though it's a free market, often in the united states, often the customer is not the one who is really paying. we've created this bizarre system -- >> the pharmaceuticals companies are not benefiting. it's the specialty pharmacies and the third-party payers. >> i'm suggesting there is a perversion to the system and the
question is how do you get to the right place. the last piece is, think about antibiotics today. how do you create a market mechanism so that drug makers actually want to create the next generation of ant bibiotics. >> if indeed we controlled things that you might want, we'll never create new generations of antibiotics. because one of of the things we want to do is we want companies like pfizer and lily and gilliad and biogen to innovate and to be able to create products which will receive people's lives -- which do save people's lives. you want that. >> i want that very much. >> the only way we do that is allow a system where we don't go in and say, you can only charge $10 for that drug. you can't do it. you will destroy innovation in america. you can go to -- the -- 1,000%.
you simply say, the first three people that make a copy of that drug get it approved in three months. >> and it's over. >> -- the regulatory overosight -- >> that one would ever invest -- >> i would agree with you. >> i feel much better. >> no. i am just saying -- >> don't you? >> the question is all the underlying forces which are not the free market -- >> let's get that. >> distinguish between -- >> this is a great moment. you want things to be more free market than they are now. >> yes. >> that's excellent. >> see what i've done. >> in only one sitting, and i've been working on it for six years. >> there are other elements of the health care system in the united states that aren't. how can we -- >> you know that we have a plethora of diseases out there
that, when you have -- your young children, and you worry about the future, and you want them to be able to live to be 100 and over with the -- >> quality of life. >> -- the quality of life that they have. the only way we're going to do that is by creating new dreugs for autism, alzheimer's, new drugs for cancer, which we're doing right now, that change outcome. and whether or not other countries -- and by the way, in england, we are getting drugs approved. >> you want that and you want a simple blood test of just a small drop of blood to be able to analyze all this stuff. hence. theranos. >> which we will talk about in the next -- we'll take a break. you knew all along this isn't wo
. welcome back. mary barra is bringing some of silicon valley to detroit. the chief executive overseeing gm's development in ride sharing service lyft and cruise animati animation. i spoke to barra at wired business conference about technology and driving to the future. >> we have had operations and people in silicon valley for years now. that's something that's very important to me because it's the art of, if i believe i can do it, i can do it. that's what i'm working to drive into the company. so, you know, i don't know what everyone else is doing. i can't -- you know as much as i know or maybe more about what the other companies are doing. all i can tell you is that, from a general motors perspective, with the core vehicle technology and experience we have, understanding functional safety, understanding how to integrate systems that are going to be on the road in an infinite number
of weather conditions, road conditions and having that piece of machinery last for, on average, 11 years right now but much longer than that, i think that experience coupled with the software that really allows you to safely choose the route is something that general motors definitely can do and we're intent on doing and leading. >> you said something very interesting. with silicon valley you like that can-do attitude, these are things that we can make possible. do you run up against headwind at -- you know, an old gm culture still that maybe is like, well, that's too difficult to come up with? >> i think we keep challenging people but the bolt was a great example. the team came in. they were, hey, we can do this in this amount of time. it will give you more miles but it will like that longer. we said, great. do that miles in this time frame. they went, oh, great. but they did it. i am an engineer by degree. sometimes we want to have it all figured out before making the
commitment, but when you challenge the team, at least at general motors, that's when they're at their best. the work force is so excited, even if they're not particularly -- their assignment is not working on the autonomous vehicle, they're excited about it. that's the kind of thing that you tap into. i'm proud of the fact that, over the last four years, we have improved our employee engagement by over 50%. we are now attracting people from around the globe. and one other point that people -- because they think about general motors as an old company. 25% of our salaried work force has less than two years' experience. bringing in new talent. people retiring. it's a very different general motors. >> do millennials actually buy cars? we hear about ride-sharing, apps like uber. are they buying cars? >> they are. i mean, i think it's on a different timetable. a big issue that gates that is affordability. there was a study i saw a couple of years ago that said millennials are generally doing
the major life-style -- milestone life events seven years later. buying the first house, starting the family. some of the things go along with when you decide, hey, i need my own vehicle depending on where i live. the nature of the customer and how they want to get from point a to b is changing, but i think our core business is going to be very strong for a long, long time. >> when we return, snapchat goes yo beyond the filters. getting into the publishing business. we have the story here on "squawk box" next. ♪
welcome back to "squawk." it's not all about video for snapchat. the social media platform is getting into the publishing business. venture beat reporting that snapchat is backing a new venture called "real life" an online tech and life magazine that will have editorial independence from snapchat. when we return, we have breaking economic news. may housing starts a few minutes away. we'll get the numbers and instant analysis straight ahead. as we head to break, look at the u.s. equity futures. dow are positive up by about 7 points. s&p and nasdaq down by less than a point. ♪ looking for balance in your digestive system?
>> up three points. >> been down all morning. it's up. ten-year. a quick look at the ten-year. we keep talking about getting a mortgage. refinancing your mortgage. 1.59 for the rates just came down this week. rick santelli is standing by at the cme in chicago. he has the number! sir. >> the survey says the may read on housing starts down .3% for seasonally adjusted annualized rate of 1.16 million. that follows a 1.167 million. you can see it's pretty tight. it is definitely arguably right around expectations. on the permit side, what may be down the road, 1.138 million. that's up .7% from 1.13. both of last month's numbers were revised. the starts number subtly downward from an originally released 6.5% higher to 4.9. and exactly the opposite, we had an improved revision on the
permit side. yes, you know, we're basically a little below 160. these are somewhat historic rates. not all-time lows. usurped the stand something low. let's put some perspective on it. yes, they're low. right now as the crow flies we're down 5 basis points on the week on tens. it feels like, oh, so much more. we're all watching equities and will continue to monitor brexit. mr. cameron may speak at some point today. we'll pay close attention. the betting polls go one way, the other polls go the other. i'm not sure how it will turn out, but markets are paying attention. back to the "squawk box" team. >> thank you, rick-ster. appreciate that. we'll get analysis in a moment. we should tell you, right now british prime minister david cameron and labour party are beginning a session.
they're about to do it. >> they haven't been seen together through this entire period of the stay versus leave. >> right. >> to have them appear together is obviously in solidarity for this, you know, tragic jo cox -- >> jo cox. >> unbelievable. >> as soon as it happens, i think we are -- >> we are going to go there. i was under the impression we had it but we don't. let's get more analysis from steve liesman. and diane. >> basically flat. this is right along expectations. what we were looking for was a gain. this is may, when we're supposed to be building more houses. specifically, i'm looking at single versus multi-family. single-family is where we really, really need housing right now. we have basically down to 4.5-month supply on the last new home sales. prices for new homes hit a record high in april because there is such short supply. we are seeing basically flat month-to-month in housing starts
for single family. multi-family, we saw a big boom in the last couple years. seeing that come off a little bit is better for the multi-family sector. there was talk of overheating. again, it's the supply that we're looking at. both existing and single-family supply is still very low. we need more. we're still operating well below -- peak of housing starts, which we don't want to see, was 1.8 million in the housing boom. normal average 1.2 million, and we're still in the 700s. so we need to see that bump up more and more quickly. guys, it's really, as the builders say, it's about the lots, the land, the labor. they can't make their margins. that's why you are seeing the prices so high for new homes. >> mr. liesman, are you with us? >> i'm here. how are you this morning? >> i'm a great. >> the first thing is that we're looking for a pretty big decline. we didn't get it. we got a modest decline. they also brought down february -- sorry, the prior month, april, a bit. it kind of probably washes out in terms of total contribution
of housing to the economy. we'll wait to see if we get a rapid update later on today. i like what diana said. it's flat and goes along with what bullard was saying, the what you see is what you get, or what you're going to get economy in the sense that, stop waiting for this big tick up back to the two million range when we were building houses. this is about probably where we are right now for a whole host of reasons. one of those reasons is, even though money appears to be cheap, lending rules appear to be fairly strict, when you look at -- when you go down the fica scores here, you have to have pretty good credit to get a loan these days. secondly, there is a bit of weather going on. we have this warmer than normal winter. you got a bit of housing that you wouldn't have gotten in the wintertime. maybe a bit of pay-back here right now. permits are okay. so look, it's been contributing decently to gdp growth. and i think it's going to continue to do that. it's one of the bright spots in the economy here. >> all right. steve, thank you.
diana, thank you. >> thank you. did you have another point? >> i was going to say it was a really interesting survey out yesterday that actually one-third of americans still think that we're still in the housing crisis and one in five think the worst is yet to come. >> wow! thank you. when we come back, we have much more from our guest host, sam waksal, plus, microsoft finding a bud and weed software. why they're making a big bet on legal marijuana. we'll be right back. ♪ ♪ using 60,000 points from my chase ink card i bought all the framework... wire... and plants needed to give my shop... a face... no one will forget. see what the power of points can do for your business. learn more at chase.com/ink
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welcome back to "squawk box." shares of viacom, check it out right now. the company guiding third-quarter earnings per share to a dollar to $1.05, even sh though the street is at $1.38. blaming the impact of the theatrical underperformance of the teenage mutant ninja turtle movie. i thought we were reporting it was up. >> it was up yesterday. >> 7%. flat this morning. now you see it down 54 cents. microsoft getting into the weed business. not a moment too soon. i don't know what took them. the tech giant striking a partnership with kind financial, to begin offering software that tracks marijuana plants from seed to sale. the software is meant to help states that have legalized marijuana keep tabs on the sales and then, you know, then you get taxes based on how much is sold. >> all right. our guest host this morning
is sam waksal, the founder of kadm kadmon, and you know him from many things including imclone. we've been talking about many things in the drug industry. theranos joe mentioned. you looked at this for a long time and were incredibly skeptical of the science behind take taking and getting a viable blood test with a finger prick worth of blood. >> well, you know, it's interesting in our industry, because we get painted with very broad strokes. we talked about that before. innovation versus other things. theranos is something that really hurt our industry, yet again. like touring and others. and the reason it did was because this was everywhere. everyone was saying, see, this little group here are able to get a diagnostic off of a drop of blood and save money for
everyone. everyone was all excited about that. problem was, when you asked someone about science and they tell you it's a secret, one should run the other way. in science, we talk -- even if we leave out minute details, we talk about what science is all about. >> you can't do a -- >> by the way, in a drop of blood on a hundred tests. so they would have said we are either dealing with the dna and being able to simultaneously pcr out multiple products, or we've discovered some dramatic ability to look at antibodies. highly unlikely. abbott and roche really work on this stuff. they care about this stuff. and they do as much as they can to alter the industry. i must say, three years ago there was a journalist that
accosted me and was asking me a bunch of questions about lots of things, and he asked me about theranos. and i said what i said. i said, if someone says it's a secret when you ask a question, it's a secret, it's a scam. so i'm -- >> wait a minute. what about kfc original recipe. >> you could reverse engineer that. you ate it. >> the formula. there are certain secrets that need to be kept, sam, and that are real. >> there are. but coca-cola pulled out the most important part of its secret during the days of ty cobb. >> are you original recipe or extra crispy? >> i don't eat either. >> what happens to theranos? >> it's going to disappear. it's a scam. i'll tell you what the journalist said. it's interesting. the journalist said to me -- >> is he sitting at this table? >> i don't want it to be a scam he said.
i said why? he said, because it's such a great story. a female ceo. she didn't graduate from stanford and she wears black turtlenecks. >> he actually included that? >> sadly. and so i looked at him and i thought, what a crazy way to pull political correctness into the world of science. >> may i ask you something else? to switch gears. were you -- was ian reed at pfizer a villain or a hero for society in trying to move pfizer to -- they would have saved a billion dollars -- >> ian reed is a hero anyway, rite? >> we're talking inversions now. you're going to have to yell at him. >> ian reed is chairman and ceo of pfizer, great american pharmaceutical company, that sold lipitor. it's right now in the immuno oncology world. ian reed took a company which
was floundering and increased that stock price dramatically, made brilliant acquisitions and drove innovation, drove innovation. and went after a company, allergan, run by another great ceo, brent saunders. brent is a great guy. and they were going to do a merger. its shareholders would have been benefited. >> what about everybody else? if they had an extra billion to spend on -- >> innovation would have benefited. >> okay. >> society would have benefited. but it was a great way to say, see, american companies are hiding their money. they're not hiding their money. and ian reed said it. he is competing with one hand tied behind his back because ga laxo smith klein, astro zenica and others -- >> andrew says they benefit from
being in this country, the infrastructure, not having price control. >> they say we get the drugs from the n.i.h. and don't pay for them. not true. not ever true. we collaborate with academic institutions and we take ideas and things sometimes that are seeds and bring them into reality. >> why doesn't pfizer owe the government money for being able to operate in this -- in the united states? >> they don't -- let me ask you a different question. do you find it troubling, across the board -- take pharma out of it -- that there are american companies that benefit from being here and using this infrastructure, this free market, by the way, also benefiting from medicare and medicaid if their drugs will be purchased -- by the way, at inflated prices relative to other countries, and then they go to other countries and we're not going to receive the same kind of tax benefit? you have to be disturbed about it. the question is, what do you do about it? >> well, one, i believe that we have to think very carefully in
a nuanced fashion, not the way -- >> that never, ever happens around here? -- in a nuanced fashion -- >> i agree. >> -- about what we're going to do about making ourselves for competitive. we do sell our drugs overseas, and often for higher prices. and by the way, lipitor probably continues to do well in asia as a generic because it's branded, than it -- >> these unnuanced, knee-jerk opinions elect presidents. hillary can get elected based on -- >> both sides. >> both sides. >> it's easy to trash pharmaceuticals. it's easy and it's wrong. but -- >> if jobs -- >> no one trashes apple. >> sam, the geographic center of the democratic party right now, given bernie sanders move of the entire party to the left, private industry creates the jobs we care about and private industry -- >> bernie sanders hopefully
is -- >> bernie sanders is not the democratic party, and, you know, we don't -- you don't make the case -- so bernie sanders attacks wall street. >> so does hillary, though. >> no one likes the guys at wall street. >> but it's not just wall street. it's the private sector itself. it's corporations that aren't paying their fair share, they're not paying their workers. >> a little company in ohio goes to 100 employees or more and wants to be a national company or an international company. they go to wall street so they can raise capital and grow and build american jobs and global jobs. we don't say that. >> no. >> we don't make nuanced arguments. >> i wasn't talking just about wall street. corporations. >> nuanced arguments, andrew. >> citizens united. horrible corporations. >> oftentimes i think we do. the question is what do you do about it? >> what you do about it, is when
you make a nuanced argument -- >> we want innovation and we want to -- >> if we don't have innovation, we will, in a retrograde fashion, destroy the -- >> andrew, just the idea that corporations need to pay a, quote, fair share of taxes when in fact, if the corporate tax rate was zero and you tax shareholders and everybody else and they could innovate more and have more jobs -- >> or if you lowered corporate taxes. we'll be back in a moment. happening right now british prime minister david cameron and the labour party leader are beginning a joint statement. >> someone who epitomized the fact that politics is about serving others. today our nation is rightly shocked. and i think it is a moment to stand back and think about some of the things that are so important about our country. the fact that we should treasure and value our democracy where members of parliament are out in
the public, accountable to the public, available to the public. and that's how jo died. she died doing her job. i think the second thing is that we should recognize that politics is about public service, people who go into public life, they want to act in the national interest, to pursue the national interest, to do things for other people to make the country, make the world, a better place. politicians disagree with each other. we often disregard what politicians say and disregard each other and the rest of it. but at the end of the day that's what it is about and that's what jo showed it is all about. but perhaps most important of all, we should value and see as precious the democracy that we have on these islands. 65 million of us live together and work together and get on together. we do have peace. we do have stability. we do have a measure of economic well-being better than other countries, obviously still to be
spread far more widely. it's all underpinned by tolerance. so where we see hatred, where we find division, where we see intolerance, we must drive it out of our politics and out of our public life and out of our communities. and if we truly want to honor jo, then what we should do is recognize that her values -- service, community, tolerance, the values she lived by and worked by, those are the values that we need to redouble in our national life in the months and in the years to come. >> mr. corbin, yourself and other senior politicians granted a level of security beyond that of the rank and file. of those hundreds of mps, what concerns does this raise for their safety as they go about their parliamentary business and their day-to-day lives? >> we need our whole society to be secure. jo was brutally murdered here 24 hours ago in this town. a town she loved, a town she
grew up in. serving a community she loved. in her life she had worked for anti-slavery campaigns, for ox-fam. she was a campaigner for human rights and justice all around the world. she was a campaigner for human rights and justice all around the world. she was taken from us in an act of hatrerehatred, in a vile act violence. it's a well of hatred that killed her. she leaves behind a husband to made a truly wonderful statement yesterday, a statement saying that in her memory we would try to conquer hatred with love and with respect. she also leaves behind two young children who will never see their mother again. they will only be able to grow up knowing what she was, what she stood for and what she achieved. i've asked the prime minister and the speaker for the recall of parliament on monday and
they've accepted that request and parliament will be recalled on monday so that we can pay due tribute to her. on behalf of everybody in this country who values democracy, values the right of free speech and values the right of political expression free from the kind of brutality that jo suffered. that's why we all need to come together to understand that everyone must have protection and security in order to function in a democratic society. joe was an exceptional, wonderful, very talented woman, taken from us in her early 40s when she had so much to difficult and so much of her life ahead of her. it's a tragedy beyond tragedy what has happened yesterday. in her memory, we will not allow those people that spread hatred and poison to divide our society. we will strengthen our democracy, strengthen our free speech.
she was a truly wonderful woman. i'm deeply sorry, deeply sad of what has happened to her. and my condolences to all the people she represented so well and of course to her wonderful family, her husband, her children and all of her wider family. >> do the events of yesterday cause you and parliamentarians to look at politics differently? do the squabbles and political rivalries of the past now seem that more trivial? >> today i think everybody is united in grief, in horror and in an overpowering respect for somebody who we came to know, whose talents we admired, whose passion we observed on a daily basis. there are legitimate differences, as the prime minister and the leader of the opposition said, and those differences are matters of
policy, they'll always be there. that's part of the democratic dialogue. but we are able to come together and to say two things. first of all, as everybody here knows, jo cox was a quite outstanding member of parliament who in 13 months representing her constituency made an extraordinary impression on her colleagues, on the media and i'm quite certain on her constituents. as has already been said, she had a huge amount more to give, and she was inspired by a moral passion and purpose and a deep-rooted conviction that she shared with brendan and which brendan and her children and colleagues and her constituency can be incredibly proud. and secondly, it was a despicable and appalling act which has shocked not merely
people here but right across the country and i suspect many millions of people around the world. evil cannot be allowed and will not be allowed to triumph over good. and we just have to underline our determination as politicians across the spectrum that free speech and the right of people to go about their business and the pursuit of principle will continue and it will not be dulled or dimmed or cowed in any way by people who think that violence and the spirit of hatred can be allowed to triumph. that has not happened, as i think we have demonstrated today and it will not happen, not now and not at any time. everybody here must be
incredibly crowd from jo cox. from my vantage point, i got to see her, i got to hear her, i knew of her passion, of her commitment and her ability and i knew of her quite extraordinary hard work. everyone here today knows that, and we've come together in grief and admiration and in respect. >> folks, we've been listening to the speaker of the house along with british prime minister cameron and party leader jeremy corwyn. >> when we return we'll have more from sam waksal about the future of innovation.
(speaking japanese) oh watson, your japanese is very good. thank you. (speaking japanese) exactly. i can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. (speaking japanese) e*trade is all about seizing opportunity. and i'd like to... cut. thank you, we'll call you. evening, film noir, smoke, atmosphere... bob...
it is one of those elections that's unbelievable. >> who are you rooting for? >> i don't talk about who i root for. i think the outcome now is going to see mrs. clinton as the next president, although -- but i don't think it makes a difference as to what's going to happen to biotech and pharmaceuticals. we are an industry that people attack, innovation in that way is easy to attack, and in the end we're going to keep doing it because we have people and science and medicine who care. >> i hear what you're saying. she doesn't really mean what she says. we know that, right? she's not going to do all this stuff she's saying now. she's just trying to get rid of bernie and -- >> we hope. we thought obama would -- >> richard nixon said it first. richard nixon said that the primaries you shift to the right or left and in a general election you move back to a
center. >> checkers. >> i wonder if america is a different place today. both political parties seem like many institutions they've lost control. >> they have lost control and people are angry. people are voting for bernie and for donald trump because of an inherent anger. >> sam, thank you so much for being here. >> thank you. >> have a great weekend, everybody. make sure you join us on monday. "squawk on the street" begins right now. ♪ let's groove tonight, share the spice of life ♪ >> good friday morning. welcome to "squawk on the street. i'm carl quintanilla with jim cramer. brexit, bullard, viacom warnings all lead the headlines. our road map begins with viacom wa